News Column

Orange County Business Bank Announces Net Income

July 23, 2014

IRVINE, Calif.--(BUSINESS WIRE)-- Orange County Business Bank (the “Bank”) (OTCBB: OCBB) announced net income for the three months and six months ended June 30, 2014.

The Bank’s net income for the three months ended June 30, 2014 was $137 thousand compared to $204 thousand for the same period in 2013. The Bank reported net income for the first six months of 2014 of $149 thousand compared to $649 thousand for the same period in 2013.

The Bank’s net interest income for the second quarter of 2014 and 2013 was $1.4 million each, respectively. Net interest income for the six months ended June 30, 2014 was $2.8 million versus $2.6 million for the same period in 2013. The Bank continues to aggressively push into established and successful markets to develop profitable relationships. This push has resulted in the growth of loans, deposits and net interest income on a year to date basis.

The Bank released excess reserves during the second quarters of 2013 and 2014 from the allowance for loan and lease losses due to recoveries and continued strong performance of the Bank’s loan portfolio. The release of provision for loan and lease losses for the first six months of 2014 was $157 thousand versus a release of $759 thousand in 2013.

In addition to continued profitability, the Bank grew assets by 6.3% during the first 6 months of 2014. At June 30, 2014, the Bank’s assets totaled $198.2 million, with loans increasing to $114.3 million, and deposits totaling $134.4 million. The Bank’s capital increased from $37.1 million at December 31, 2013 to $38.4 million at June 30, 2014 due to the Bank’s net income as well as an increase in the underlying value of the Bank’s investment securities portfolio. The Bank’s capital ratios continue to far exceed regulatory guidelines for “well-capitalized” institutions.

Subsequent Event Note:The Bank received its largest single principal and interest recovery on July 1, 2014 – the first day of the third quarter.The total $2.2 million recovery includes $206,000 of recovered interest.The principal amount will be reviewed at the end of the third quarter of 2014 to determine the appropriate amount to be allocated to income versus keeping a portion in reserves to support loan growth.This recovery is the result of an ongoing, long-term plan for the recuperation of previous charge-offs.

Orange County Business Bank offers complete relationship banking services for locally owned and operated businesses, professional practices and commercial/industrial companies of Orange County and adjacent markets. The Bank’s services include a broad selection of depository as well as business loans and commercial real estate financing products uniquely designed for each client. The Bank maintains its administrative offices at 17901 Von Karman, Suite 100, Irvine, California 92614. The Bank’s website is

This press release includes ‘forward-looking’ statements within the meaning of Section 27A of the Securities Act. All of the statements contained in this press release, other than statements of historical fact, should be considered forward-looking statements, including but not limited to, any statements which may concern (i) the Bank’s strategies, objectives and plans for expansion of its operations, product and services, and growth of its portfolio of loans, deposits and investments, (ii) the Bank’s beliefs and expectations regarding actions that may be taken by regulatory authorities having oversight of the Bank, (iii) the Bank’s beliefs as to the adequacy of the allowance for loan losses, and (iv) the Bank’s beliefs and expectations of the future operating results. Although the Bank believes the expectation reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All subsequent written and oral forward-looking statements by or attributable to the Bank or persons acting on its behalf are expressly qualified in their entirety by this qualification. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are not intended to give any assurance as to future results. The Bank undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

As of and for the As of and for the
Three Months Ended June 30, Six Months Ended June 30,







Operating Data
Interest income $ 1,554,000 $ 1,548,000 $ 3,162,000 $ 2,892,000
Interest expense   159,000     152,000     313,000     288,000  
Net interest income 1,395,000 1,396,000 2,849,000 2,604,000
Provision for loan and lease losses   (157,000 )   (184,000 )   (157,000 )   (759,000 )

Net interest income after provision for loan and lease losses

1,552,000 1,580,000 3,006,000 3,363,000
Non interest income 137,000 138,000 269,000 259,000
Non interest expense   1,552,000     1,514,000     3,126,000     2,973,000  
Income before provision for income taxes 137,000 204,000 149,000 649,000
Provision for income taxes   -     -     -     -  
Net income $ 137,000   $ 204,000   $ 149,000   $ 649,000  
Per Share Data and Other Ratios
Net Earnings – Basic $ 0.03 $ 0.04 $ 0.03 $ 0.14
Return on Average Assets 0.29 % 0.47 % 0.16 % 0.75 %
Return on Average Equity 1.45 % 2.11 % 0.79 % 3.35 %
Net Interest Margin 2.98 % 3.11 % 3.17 % 3.08 %
Balance Sheet Data and Related Ratios
Total Assets $ 198,264,000 $ 186,448,000
Total Loans 114,343,000 109,766,000
Allowance for Loan Losses (ALLL) 1,679,000 1,698,000
Investment Securities 42,455,000 58,125,000
Total Deposits 134,426,000 129,953,000
Total Shareholders’ Equity 38,411,000 37,077,000
ALLL as a Percentage of Total Loans 1.47 % 1.55 %
Book Value $ 8.13 $ 7.85
Actual Number of Shares Outstanding 4,724,576 4,724,576

Orange County Business Bank

JP Gough

Chairman & CEO

Phone: (949) 221-0001

Fax: (949) 225-1500


Victor E. Guerrero

Executive Vice President

Chief Financial Officer

Phone: (949) 999-2642

Fax: (949) 225-1500

Source: Orange County Business Bank

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Source: Business Wire

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